A prominent Fort Lauderdale attorney who courted investors, politicians and celebrities while leading a lifestyle of seemingly inexplicable wealth was charged with racketeering conspiracy Tuesday for allegedly victimizing investors in a more than $1 billion Ponzi scheme.

Federal authorities also charged Scott Rothstein, 47, with conspiracy to commit money laundering, mail fraud and wire fraud, plus two counts of wire fraud for using money from new investors to pay earlier ones from 2005 until the alleged scam's collapse in early November.

Rothstein allegedly used his wealth and outwardly successful law firm to lure clients into investing in non-existent settlements of sexual harassment and whistle-blower lawsuits.

Prosecutors charge he tricked investors into believing they would get the full value of the settlements over time in exchange for funding smaller lump sums to the purported victims upfront.

"Scott Rothstein appeared to be a charismatic, reputable attorney one could trust to invest one's money and make a sizable profit," said John Gillies, the special agent in charge of the FBI's Miami office. "We now know it was all smoke and mirrors."

The estimated losses appeared to make the alleged financial crime the largest U.S. Ponzi scheme since last year's collapse of the $21.2 billon-and-counting scam run by Bernard Madoff.

Madoff is now serving a 150-year prison term – essentially, a life term equivalent to the 100-year top penalty Rothstein faces if convicted on all five counts.

Prosecutors filed the charges in a criminal information, a procedure that often signals that a defendant will plead guilty and cooperate. However, Rothstein entered a not guilty plea in federal court.

Magistrate Judge Robin Rosenbaum ordered him held without bail, noting that he sent roughly $15 million to bank accounts in Morocco and briefly fled there before returning to Florida.

The Associated Press quoted Rothstein defense lawyer Marc Nurik as saying "there is no deal at this point in time," and adding that his client hopes to repay as many investors as possible.

The court filing cited unnamed "other conspirators," a sign that additional suspects could eventually face charges.

The criminal case follows a November civil lawsuit that accused Rothstein, his now-defunct law firm, TD Bank, three of the bank's executives and others of bilking one group of investors out of hundreds of millions of dollars.

The lawsuit alleges that TD Bank, one of the nation's 15 largest commercial banks, "was complicit" in the alleged scheme by providing records that made it seem Rothstein controlled the funds promised to investors.

"We are confident that the legal process will show that TD Bank has acted appropriately and the facts will prove that the bank did not conspire with Mr. Rothstein and or his firm," said bank spokeswoman Rebecca Acevedo.

The alleged scam has sent shock waves through Florida legal, political and investment communities. "A lot of people have been badly hurt by this," said former Florida representative Lawrence Smith, whose son once ran a branch office of Rothstein's law firm.

The accused scam mastermind graduated from the University of Florida with a criminal justice degree in 1984 and from Nova Southeastern University's law school in 1988.

He co-founded Rothstein Rosenfeldt Adler, the Fort Lauderdale-based law firm that puzzled some Florida competitors by rapidly expanding from seven lawyers in 2002 to more than 70 this year despite the steepest national recession in generations.

During the firm's rapid growth, Rothstein lived large – and loud – allegedly on the millions from the scam.

Writing in his political blog last month, GOP election consultant and former Rothstein business partner Roger Stone described his ex-associate as "like Rodney Dangerfield at the country club in (the film) Caddyshack, throwing money around (and) tipping parking valets $100."

"At a certain point, the level of spending got obscene," Stone added in an interview last week. "I can see where a person might want one Rolls-Royce. But why would you want two?"

The more than eight-page list of Rothstein holdings that prosecutors are seeking via forfeiture features 20 luxury cars, including the two Rolls-Royce autos cited by Stone, and a Bugatti Veyron EB, a sports car that can top 200 miles per hour and sells for more than $1 million.

The list also features an 87-foot yacht, and millions of dollars in properties in Fort Lauderdale and elsewhere in Florida, including Rothstein's share of the Miami Beach mansion once owned by the late fashion designer Gianni Versace.

Not that the lavish spending was confined to Florida.

Last summer, Rothstein and his wife, Kimberly, paid $5.95 million for a 42nd-floor condominium in a newly constructed luxury tower on Manhattan's East Side. The 1,512-square-foot unit features a living room with floor to ceiling windows that offer views of the Empire State Building and Chrysler Building.

Also on the list is the money Rothstein sent to Morocco, plus his interest in a variety of restaurants and other business ventures, and contributions to an array of politicians and charities.

Many had already moved to distance themselves from Rothstein soon after the alleged scam crumbled. The Florida Republican Party turned over nearly $150,000 in Rothstein contributions to prosecutors, and the Florida Democratic Party similarly handed in $200,000.

Rothstein's family foundation also gave at least $425,000 to charities affiliated with former NBA All-Star Alonzo Mourning and NFL Hall of Famer Dan Marino, a federal tax return shows. And the Rothstein name graces the front of a recently built Fort Lauderdale synagogue.

William Scherer, the attorney for investors who filed the civil suit, said Rothstein's hobnobbing with politicians and celebrities generated an "appearance" of wealth and success that helped attract and reassure clients.

"He did know how to create the impression of influence. The impression of success. The impression of sophistication," said Stone. "Surround yourself with cops, and no one will think you're a crook."

The criminal information filed against Rothstein accused him of paying unidentified high-ranking police officials to discourage any investigation of his activities.

Election records show Rothstein took an interest in the 2008 race for Broward County sheriff. He initially backed the winning bid of incumbent Al Lamberti, a Republican appointed by Crist.

But in the campaign's closing days, two attorneys from Rothstein's law firm contributed $160,000 to Scott Israel, the Democratic challenger. Stone argued the money actually came from Rothstein, and potentially violated election laws. The attorneys involved could not be reached for comment.

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